Solutions
Compliance Monitoring
The Red Flag Group provides ‘Compliance Monitoring’ Solutions to both Companies and also at the request of Government Agencies. Compliance Monitoring is a growing tool increasingly used by the US Justice Department who require companies retain compliance monitors in connection with negotiated settlement agreements. In some cases this allows companies to resolve criminal cases without a formal conviction.
Company Appointments
The appointment of a Compliance Monitor by a company might be used in situations where the Company:
  • Wants to implement a Monitor to whom they trust and will assess their Company Compliance programs in a fair and non-judgemental way
  • Has had some compliance breaches and wants to proactively appoint a Monitor to ‘get things right’ in the hope that one will not be appointed by a Government Agency as part of a settlement Agreement
  • Who wants to control the scope of a Monitor to those areas of specific concern
Government Agency/Company Appointments
The appointment of a Compliance Monitor by a Government Agency is often subject to the review of nine principles that U.S. Attorneys consider with respect to the areas of selection, scope of duties, and duration of a compliance monitor imposed as part of a negotiated settlement:
Selecting a Monitor.The monitor selection should be the result of discussion between the government and the company. The monitor need not be an attorney, but can be another expert, such as an accountant or compliance executive. Any selection must be approved by a Department of Justice committee.
[Our Compliance Professionals have a range of skills, including, legal, accountancy and compliance]
Maintaining Independence.The monitor is an independent third party and should not act as an agent of the government. The company should not attempt to seek legal advice from the monitor. Despite the monitor’s independence, monitors are encouraged to maintain an open dialogue with the company and the government.
[The Red Flag Group is not a law firm and does not seek to provide legal advice. Our firm is an independent consulting company and seeks to act for Clients the subject of Compliance Monitor that we have not otherwise acted for]
Assessing and Monitoring Company Compliance.The monitor's primary role is to monitor the company's compliance with the terms of the settlement agreement, which may include evaluating whether sufficient controls and appropriate ethics and compliance programs have been adopted, or proposing such controls and programs.
[Our Consultants have worked for many years both in-house and in consulting roles where they have built internal controls.]
Appropriately Tailoring the Monitor's Role.The monitor should understand the full scope of the company's misconduct at issue, but the monitor's responsibilities should be no more broad than necessary to address and reduce the risk of recurrence.
[The Red Flag Group Consultants set out very clear guidance on Scope and Roles and responsibilities at the start of any engagement.]
Communicating and Reporting to the Government.It may be appropriate for the monitor to make periodic reports to the government, including reporting the monitor's activities, whether the company is complying with the terms of the agreement, and any recommendations that might better enable compliance and limit risk of recurrence.
[Our Consultants communicate to both the Company and regulators as appropriate using a range of communication tools including regular scheduled meetings, telephone calls, web meetings, and the use of case management tools that give live updates and information back to those seeking the reports]
Rejecting Monitor's Recommendations.If the company chooses not to adopt the monitor's recommendations, either the company or the monitor should report this fact to the government so that the government may consider the company's reasons.
[As Consultant’s to business, we accept that the business makes decisions every day on a range of issues and based on a series of considerations. We acknowledge and understand that in many cases clients may wish to take a different approach that what we may suggest or recommend is best practice. We have an approach to document and report our approaches and their acceptance as part of our reporting mechanism.]
Reporting Previously Undisclosed or New Misconduct.The agreement should clearly identify any types of undisclosed or new misconduct that the monitor will be required to discuss with the company and to report to the government. The monitor should consider reporting certain misconduct immediately and directly to the government, including where there is a risk to public health or safety, involvement of senior company management, potential obstruction of justice, criminal activity the government is in a position to investigate covertly, or poses a substantial risk of harm.
[Our Consultants communicate to both the Company and regulators as appropriate using a range of communication tools including regular scheduled meetings, telephone calls, web meetings, and the use of case management tools that give live updates and information back to those seeking the reports]
Tailoring Tenure to the Circumstances.The nature and seriousness of the underlying offense, the history and pervasiveness of the misconduct, including the involvement of senior management, the corporate culture, and the scope and complexity of the remedial measures should be considered when negotiating the duration of the agreement.
[Our Consultants are available for short term (1-3 month) assignments or assignments up to 2-3 years.]
Allowing for an Extension or Early Termination.The agreement should provide for an extension of the monitor's position with the company at the discretion of the government if the company has not satisfied its obligations under the agreement. Conversely, a right of early termination should be provided if the company can demonstrate that there is a change in circumstances that negates the continued need for a monitor.
[Our Consultants are available for short term (1-3 month) assignments or assignments up to 2-3 years. We retain talent in order to be flexible to the client’s needs and can arrange for reductions or extensions as necessary. Our costs and charges are also flexible to adapt to changing positions.]
Benefits
  • Our consultants have Language capability in order to deal with International Issues
  • Our consultants are able to be deployed for long periods of time into International regions where the majority of Compliance breaches occur
  • Our consultants have a range of skills, most of them being ex in-house lawyers, finance officers or Compliance professionals
  • Our consultants are completely A-Political. We are here to build the Compliance Infrastructure in the Client, we don't bring our political views to our work.
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  • SME Soluitions
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  • Third Party Management
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  • Remediation and Planning
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  • Fidiciary Bootcamps
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The Red Flag Group is a Governance, Risk & Compliance advisory & technology firm, and not a law firm nor CPA firm. We do not provide legal advice nor provide attest services, audits, or other engagements in accordance with the AICPA's Statements on Auditing Standards.